I dug up my retail gold edition CDs that I bought because
1. I didn't know any better and
2. I couldn't find a copy of classic at the time
Now that I've had classic for a while, I tried to play it on XP and for some reason the game would crash if I hit anything. Once I installed gold edition and it worked, I went into the trip mode and the AI work the way they're supposed to work. At this time I was using the glide wrapper, but the framerate wasn't capped or anything.
So for whatever reason, the AI work properly using the retail version of gold edition but not the patched version.